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Vegas Channel is a technical analysis tool based on the exponential moving average (EMA), which is mainly used to determine market trends and trading opportunities. (There are many EMA moving average combinations, but today we only talk about Vegas).

📌Origin of Vegas Channel:

It was originally proposed by a hedge fund manager named Vegas. The construction of the Vegas channel does not rely solely on subjective judgment. I believe everyone can solve the theoretical knowledge on Baidu and I will only talk about my own usage.

First is the parameters: 144-169 576-676. Four EMA lines form two channels.

Open the indicator settings on the trading interface, find EMA, and set the parameters.

🎈 Vegas channel level push and confirmation:

📌 From the above chart, we can see that the 4-hour BTC trend is entirely focused around (144-169) for push and confirmation.

How to discuss push: Looking at the far left, in the uptrend phase, the pullback confirmation is the 144-169 channel, which shows a clear price reaction. After the price breaks below the channel, each time it pulls back to test the channel, it forms effective resistance.

Definition: From the left side of the 4-hour trend, the current (144-169) channel can still serve as a resistance judgment.

For levels not mentioned (576-676), any opening position at any level will consider (576-676) channel as the final stop-loss position. In simple terms: as long as the price completely breaks and closes above the (576-676) channel line, your order should be timely stopped out and re-evaluated for re-entry!

Can only watch for 4 hours? Can't watch for 1 hour? Wrong! ❎ #BTC

Back to the interpretation of level pushes: The first judgment we need to make is which level the current price movement is confirmed by. See the chart below 👇🏻👇🏻👇🏻

Definition of the above chart: Let me switch the timeframe to 1 hour, and we see that the trend in the chart is the verification trend of the (144-169, 576-676) double channel. However, in the right segment of the chart, the confirmed trend is relatively in the (576-676) channel.

PS: If you are trading on a 1-hour level, your perspective should be on the (576-676) channel!

📢 Here is a fatal mistake ❎: When you trade on the 1-hour chart, do not switch to the 4-hour or larger time frame to look for resistance when the price breaks. This will inadvertently create a willingness to hold onto losing trades!

There are thousands of cases; as long as you have set the indicator parameters, you can track the trends of the coins you are following.

Some partners also ask me if the 15-minute timeframe can use the Vegas channel for trading?

The answer is yes ✅ but you also need to understand that since you are trading on a 15-minute timeframe, your take profit and stop loss should also be set according to the 15-minute level. ⚠️ The smaller the level, the lower the margin for error.

Looking at the current 15-minute chart, I do not see any trend confirmation in the 15-minute timeframe. The only subjective observation is that there is a small double bottom in the (144-169) channel, and that’s all.

Below 👇🏻👇🏻👇🏻 is an interpretation of a downtrend case in the 15-minute Vegas double channel push.

If you follow your trading system and adhere to the Vegas channel, there is no opportunity to enter the market when the price has not broken through the channel level you are watching. Many traders, however, cannot stick to their trading systems.

Always thinking that since it has dropped so much, I do not believe in this evil, I want to bottom fish, I want to buy at the lowest, thus creating a vicious cycle.

Every trade needs to achieve: trend identification, confirmation of support and resistance, trading decision (aggressive or conservative), stop-loss and take-profit.

Persist in using your own trading system to make more than 20 trades, and then analyze the profit and loss ratio and win rate of your trading system.

Rather than using EMA for three trades, Bollinger Bands for five trades, and Harmonics for seven trades. If you use lines for five trades, you will ultimately believe that trading relies on guessing sizes rather than cognitive judgment.

Conclusion: Trading skills are not about guaranteeing 100% profit but about using tools to judge the market and make reasonable arrangements for opening and closing positions.

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